There is a tax cap for cigars in the northeastern United States, but it's not in New York.

On Friday, the state tax on cigars in Connecticut, New York's neighbor to the north and east, went into effect. It was a rare tax break in a budget signed by Gov. Daniel Malloy that saw taxes rise on all matter of items, and taxes created for services and items that had long gone untaxed, such as towing services, pet grooming, and spa services. The taxes on liquor soared by 20 percent, and the tax on cigarettes increased to $3.40 per pack.

Retailer Sam Desai, of M&M Cigars in South Norwalk, Connecticut, hailed the tax break and hoped it would help business. He said customers this year had been very cost conscious.

"People are trying to find bargains," said Desai. "They don't want to spend more than $10."

New York retailers have long lobbied for a $1 tax cap on cigars, but the issue has been shelved until January.